TOTAL securities turnover on the Singapore Exchange : S68 -0.98% fell 3.2 per cent on the year to S$27.2 billion in November 2022, while total market turnover volume slid 13.2 per cent to 33.9 billion securities.

 

Month on month, the total market turnover value was 18 per cent higher, while volumes rose 17 per cent, according to SGX&rsquo s monthly market statistics report released on Monday (Dec 12).

 

The bourse operator noted that record foreign exchange (FX) trading activity drove derivatives volume during the month amid optimism over Asian economies and signs that the US Federal Reserve would ease interest rate hikes.

 

Total derivatives traded volume was up 30 per cent year on year to 23.7 million contracts, the highest amount since March 2022. The daily average volume for derivatives trading was up 26.6 per cent to 1.1 million.

 

Hedging activity on over-the-counter and futures marketplace SGX FX also accelerated in November on US dollar weakness, SGX noted. Meanwhile, total FX futures traded volume jumped 103.8 per cent on the year to an all-time high of four million contracts.

 

The securities daily average value for November stood at S$1.2 billion, down 7.6 per cent on the year and up 7.4 per cent on the month. Volumes, meanwhile, were down 17.1 per cent on the year but up 6.5 per cent month on month.

 

The Straits Times Index climbed 6.4 per cent in November to 3,290.49, the strongest price performance for the benchmark since March 2021. Dividends boosted total returns to 6.9 per cent, SGX said.

 

Exchange-traded funds (ETF) turnover volume surged 118.8 per cent year on year to 315 million shares in November, although turnover value declined 10 per cent to S$389 million.

Total securities market turnover value fell 10% m-o-m in October to $23.1 billion, while securities daily average value (SDAV) slid 1% m-o-m to about $1.2 billion, reported the Singapore Exchange (SGX) Group on Nov 14.

 

During the month, stock market activity in Singapore was characterised by a fluid outlook for growth, trade, inflation, rates as well as earnings. Net fund inflows were led by the industrials, telecommunications, technology and energy sectors, while net outflows were largely attributed to the REIT sector, says SGX.

 

The bellwether Straits Times Index (STI) declined 1.2% in October to 3,093.11. This brought its total return for the first 10 months of 2022 to +2.6%, compared with -9% for the FTSE ASEAN All-Share Index and -15.6% for the FTSE Developed Index.

 

Derivatives volume across multiple asset classes climbed to new highs amid increased trading activity by global institutions, as optimism that central banks may moderate their interest-rate hike cycles countered concerns over China&rsquo s economic outlook.

 

Derivatives daily average volume (DAV) gained 23% y-o-y in October to 1.2 million contracts, the highest since March 2020.

 

Total derivatives traded volume across equity, foreign exchange (FX) and commodities was up 21% y-o-y at about 22 million contracts.

 

The SGX Equity Derivatives suite of Asian benchmark index futures saw " robust" activity in October, as volume rose 15% y-o-y to 15.3 million contracts.

 

SGX FTSE China A50 Index Futures volume climbed 15% y-o-y to 8.4 million contracts, while SGX FTSE China H50 Index Futures posted a record DAV for the month.

 

SGX FTSE Taiwan Index Futures volume increased 17% y-o-y to 1.6 million contracts. SGX MSCI Singapore Index Futures volume gained 33% y-o-y to 1.4 million contracts, setting records for single-day volume, DAV and month-end open interest.

 

On SGX Fixed Income, the amount issued from 83 new bond listings stood at $17.4 billion in October. Highlights included the Housing and Development Board&rsquo s $1.2 billion five-year green bonds, Industrial Bank of Korea&rsquo s US$600 million ($825.82 million) two-year social bonds and Komatsu Finance America Inc.&rsquo s US$600 million five-year sustainability-linked notes.

 

More activity in FX, commodities

 

Heightened inflation expectations and sustained US dollar strength drove hedging on SGX FX. Total FX futures volume surged 49% y-o-y in October to 3.3 million contracts, with SGX INR/USD Futures volume up 17% y-o-y at 1.5 million contracts.

 

The SGX USD/CNH Futures contract reinforced its position as the world&rsquo s most widely traded international renminbi futures, with average daily volume (ADV) rising 86% y-o-y to US$7.8 billion, an all-time high.

 

ADV of SGX KRW/USD Futures climbed 25% y-o-y to a record US$121.2 million, while month-end open interest increased 88% month-on-month (m-o-m) to US$155.8 million.

 

Iron ore prices fell in October as infrastructure and construction activity remained weak. Benchmark iron ore derivatives volume jumped 79% y-o-y to 2.5 million contracts on the back of hedging demand, lifting total derivatives volume by 55% y-o-y to 2.9 million contracts.

 

Petrochemicals volume gained 6% y-o-y, while the slowdown in physical commodity trading was reflected in reduced activity in freight derivatives.